In this publication, we would like to highlight the most significant changes and innovations in the legislation of the Republic of Kazakhstan in 2021.
A special program of the Astana International Financial Center was adopted, according to which the individuals can apply for the status of an investment resident. Now, if an investment resident has indirect or direct ownership of a controlled foreign company, it is exempt from taxation.
Some changes were introduced to the specifics of the withdrawal of pension savings. In the case of a lump-sum pension payment, the individual income tax is calculated when transferred by a single accumulative pension fund to the recipient's bank account. When an individual leaves for permanent residence outside the Republic of Kazakhstan or upon inheritance, the amount of individual income tax not withheld from the lump-sum pension payment is subject to withholding. Voluntary pension contributions transferred to the unified accumulative pension fund, a voluntary accumulative pension fund in favor of the employee are not considered as income of an individual.
Now, the payers of a single aggregate payment do not submit a declaration for a single income tax.
Citizens of the Republic of Kazakhstan shall not declare money in bank accounts in foreign banks located outside the Republic of Kazakhstan, in the declaration on individual income tax unless this is required according to the procedure for universal declaration.
Insurance payments made by insurance organizations under endowment insurance contracts will also be excluded from the income of an individual subject to taxation.
Also, now individuals can use one-time passwords when signing tax reporting forms.
From January 1, 2022, the minimum threshold for compulsory registration for value-added tax will be reduced from 30,000 MCI to 20,000 MCI per year.
We would like to highlight the most significant changes and innovations in the legislation of the Republic of Kazakhstan in 2020.